The Federal Reserve is monitoring currency markets “closely” and will conduct policy in a way that will “help ensure that the dollar is strong”, Ben Bernanke said yesterday in rare comments on the US currency.
In remarks apparently aimed at reassuring markets and foreign governments that the central bank is not indifferent to the fate of the dollar, the Fed chairman said “we are attentive to the implications of changes in the value of the dollar”.
He added that the Fed “will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability” – and that in doing so it would support the value of the currency.